Investing in stocks is simple, but not easy. It requires passion, patience and discipline
Every investor wants to make money in stocks, irrespective of the level of experience. It is easy to fall for the temptation, but one needs to have a good strategy in place to be able to protect one’s money and make handsome returns.
Investing in the stock market is simple, but not easy. It requires passion, patience and discipline. Plus, one needs to have a sound understanding of the market and the forces at work and also some bit of research capability.
Do your homework
“If you do not study any company, you have the same success buying stocks as you do in a poker game if you bet without looking at your cards,” said Peter Lynch, a globally-renowned fund manager.
Lynch says you should only invest in what you know and take the time to learn about what you don’t.
Dinesh Rohira, CEO & Founder of 5nance, an online financial planning portal, says there are no shortcuts to make money in the stock market.
“It is imperative to do thorough research with a considerable amount of patients. It will be sensible to invest in a company which is easy to understand with a sustainable business moat,” he said
Invest in business
An individual should always invest in a business instead of simply looking at the stock price. Abhimanyu Sofat, Head of Research at IIFL Securities, says: “Understanding a business will help one analyse the future prospects of a company and help make better investment decisions.”